Inquiring minds are asking "Why Is California Broke?" It's a good question. Please consider ...
- California has the 3rd highest state income tax in the nation: 9.55% tax bracket at $47,055 and 10.55% at $1,000,000 - Tax Foundation 2010 State Business Tax Climate Table 2
- California has the highest state sales tax rate in the nation by far at 8.25%. Indiana is next highest at 7%. Table 15
California corporate income tax rate is 3rd worst in the nation with a rate of 8.84%. - Table 2 and Table 8
- California ranks 13th in property taxes. Table 2
- California has the fourth highest capital gains tax 9.55%. - Capital Gains Tax Rates By State
- California has the highest gasoline tax as of January 2010, averaging 65 cents/gallon. The national average is 47.4% - API Motor Fuel Taxes
- California has one of the highest state vehicle license car taxes, 1.15% per year on value of vehicle, up from 0.65% in 2008. [expired link]
So where's the money going?
- 1 in 5 in LA County receiving public aid, nearly 2.2 million people as of February 2009. 20% in Los Angeles County receive public aid
- California has 12% of the nation’s population, but 36% of the country’s TANF (“Temporary” Assistance for Needy Families) welfare recipients – more than the next 8 states combined. Unlike other states, this “temporary” assistance becomes much more permanent in CA. July, 2009 California has more recipients in key welfare category than next eight states combined.
- California prison guards highest paid in the nation. The maximum pay of California's prison guards is nearly 40 percent higher than that of the highest-paid guards in 10 other states and the federal government, according to a study by the California Department of Personnel Administration. Cal-Taxletter
- California teachers easily the highest paid in the nation. National Education Association
- California now has the lowest bond ratings of any state, two steps above junk. The new rating affects about $72 billion of general obligation and lease-supported bonds. July 15 California bond rating cut again
- California ranks 44th worst in “2008 lawsuit climate.” Institute For Legal Reform